A new year hasn’t necessarily brought a new wave of excitement and momentum for retail just yet. So far, with Macy’s Inc. announcing layoffs and experts predicting more bankruptcies, 2017 has brought just the opposite for the industry.
Nevertheless, it’s probably too early to make a definitive call in either direction.
In the meantime, analyses have posited familiar explanations for retail’s hardships: Consumers’ growing affinity toward experiences over products, a lack of omnichannel development and dull product are among them.
But not every firm is floundering during retail’s rough patch.
Here, we round up three areas where some fashion firms are winning.
Product is still king, and companies that can deliver the right goods are reaping the rewards, according to experts.
Cowen & Co. analyst John Kernan called out Adidas in a note today as one of the brands most equipped to weather retail’s turbulence due to its healthy assortment of fresh and innovative product.
“Adidas remains in the most robust product cycle of anyone in global retail in our opinion and is gaining consumer preference in apparel in North America versus Nike in key 18-34 year old demographics,” Kernan writes.
Other experts say that with consumers’ preference continuing to lean more heavily toward experience, the brands and retailers with the most compelling wares are the only ones getting people excited about spending on things these days.
Getting Price-Value Right
The off-price channel — chains such as Marshalls and TJ Maxx are the most notable — has been snapping up a larger share of consumers’ wallets than ever before.
Today’s shoppers — millennials, in particular — are extremely price-conscious but don’t want to sacrifice value for price. So stores that offer high-quality fashion brands at significantly lower prices — even if the item happen to be a season or two old — are where consumers are spending the most money.
Speedy Delivery and Flexible Service
Some firms just get it: Consumers want what they want, when they want and how they want it. Brands and retailers that can get people their fashion needs quickly and easily – preferably with no delivery costs — are in the sweet spot.
E-tailing giant Amazon.com Inc. is one example of a company that is keeping the pace with today’s demanding consumer by offering lightning fast delivery via its Prime platform.
Department store Nordstrom Inc., a pioneer of the buy online, pickup in store (BOPIS) platform, is another example of a traditionally brick-and-mortar firm that has successfully tapped new methods for engaging shoppers in the digital age.